Student loans are a type of loan designed to help students in Australia with their educational expenses. These loans are mainly offered through the government's Higher Education Loan Program (HELP).
While HELP loans are broadly accessible in Australia, certain individuals may not be eligible. Excluded categories may include some international students studying in Australia, those studying part-time, and those pursuing some specific courses that don’t meet the program's rules.
If you don’t qualify for a HELP loan or need more money for your education, you might think about getting a student personal loan. Just like a regular personal loan, a student loan allows you to borrow money that can be used for eligible purchases related to your education. You then pay back the loan amount plus interest to the lender in regular installments over a set period.
Lenders make money by charging interest and fees on loans, and they usually offer the most appealing rates and fees to customers with excellent credit scores. As a student, it's unlikely that you have established enough credit history to have an excellent credit score.
Securing a loan as a student can present its fair share of challenges. Even though you might relish in discounts when it comes to entertainment and shopping, obtaining approval for a loan is an entirely different ballgame. However, there are actionable steps you can proactively take to enhance your credit score before seeking approval for any credit products. By doing so, you may position yourself in a more favourable light among lenders and potentially increase your chances of obtaining the financing you need.